FBI demands CRA records from city of Tallahassee

A federal grand jury has asked the city of Tallahassee for records involving the Community Redevelopment Agency involving top local developers and business people.
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City and CRA officials have been asked for documents, emails and financial information relating to notable developers and downtown projects including the developers of the Gateway Building at the corner of Tennessee and Monroe streets.(Photo: Joe Rondone/Democrat)Buy Photo

Federal authorities have demanded the city of Tallahassee produce volumes of records related to top local developers behind some of the biggest projects subsidized by the Community Redevelopment Agency.

Two separate grand jury subpoenas to the city and the CRA were issued jointly by the FBI and the U.S. Attorney seeking evidence to present to a grand jury. The subpoenas requested emails and other documents from the CRA and a who's who of Tallahassee business leaders, developers and political movers and shakers.

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City and CRA officials have been asked for documents, emails and financial information relating to notable developers and downtown projects including the developers of the DoubleTree Hilton Hotel.(Photo: Joe Rondone/Democrat)

The projects they worked on include the DoubleTree Hilton Hotel, the Gateway Center and the Edison Restaurant, which collectively received several million in tax dollars to help with construction and add other improvements like sidewalks.

City commissioners received copies and briefings of the subpoenas this week.

"Clearly, anytime a grand jury is requesting information from the city, that concerns me," City Commissioner Gil Ziffer said. "After reading the document, I'm not quite sure what they're interested in. And until we get more information, I have no comment."

The U.S. Attorney's Office was characteristically mum on the FBI investigation.

"We do not have any public information in that inquiry," said Amy Alexander, a spokeswoman for the office.

Scott MaddoxVisit A Tangled Webhttp://data.tallahassee.com/tangled-web-cra/for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. Tim Wheeler, TREW Media, Inc.

Kim Rivers
Visit A Tangled Web
http://data.tallahassee.com/tangled-web-cra/
for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. Special to the Democrat

John
Thomas “J.T.” Burnette, a local developer and businessman who along with former business
partner Chad Kittrell renovated the Hotel Duval and DoubleTree hotel downtown,
and received $1.8 million in local tax dollars to build the Gateway Center. He
is life partner with Kim Rivers, CEO of Trulieve medical marijuana company. TaMaryn Waters/Democrat

Mayor Andrew Gillum.Visit A Tangled Webhttp://data.tallahassee.com/tangled-web-cra/for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. Joe Rondone/Democrat

The Edison, housed inside what was once the city Electric Building, mixes the old with the new with its decor.Visit A Tangled Webhttp://data.tallahassee.com/tangled-web-cra/for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. Patrick Brennan/FSView

City and CRA officials have been asked for documents, emails and financial information relating to notable developers and downtown projects including the developers of the DoubleTree Hilton Hotel. Joe Rondone/Democrat

The Hotel Duval in downtown TallahasseeVisit A Tangled Webhttp://data.tallahassee.com/tangled-web-cra/for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. Joe Rondone/Democrat

The Gateway Center, the new office and retail development at the corner of Monroe and Tennessee streets.Visit A Tangled Webhttp://data.tallahassee.com/tangled-web-cra/for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. NAI TALCOR

Sunnyland Solar, a company owned by J.T. Burnette and Frank Whitley.
Visit A Tangled Web
http://data.tallahassee.com/tangled-web-cra/
for a look at those under the microscope of federal investigators and their connections to the city, businesses and each other. Joe Rondone/Democrat

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Among those named in the subpoenas are Adam Corey, developer of the city-backed Edison restaurant in Cascades Park and a former campaign treasurer for Mayor Andrew Gillum; John "J.T." Burnette, an entrepreneur known for redeveloping the Hotel Duval; Kim Rivers, principal of InkBridge and CEO of Trulieve, a licensed medical marijuana dispensary; Paige Carter-Smith, executive director of the Downtown Improvement Authority and a longtime business associate of City Commissioner Scott Maddox; and Governance Inc., Maddox's former firm.

Also named in the subpoenas are Melissa Oglesby, Catherine Baker, Frank Whitley and Whitley Contracting, IB Tallahassee, Kaiser Kane, Chad Kittrell and Hunter and Harp LLC, SheltonDean, and Sunnyland Solar, whose principals are Burnette and Rivers.

The Tallahassee Democrat sought comment Thursday from a number of people listed in the subpoena but did not hear back from any of them.

Gillum, who is running for governor, did not answer a call to his cell phone, but his campaign issued a short emailed response to questions about the investigation.

"We expect the city to respond fully and completely to the subpoena and we hope the situation is resolved quickly," said Geoff Burgan, a campaign spokesman.

In the subpoena, which was issued June 13, federal authorities requested numerous documents from the city and the CRA from April 2012 to the present, including communications between any of the individuals and firms listed in the subpoenas and city commissioners. They also asked for records of any and all votes by city commissioners and members of the CRA, which include city and county commissioners, on any applications, bids, proposals or submissions to the city and the CRA.

Investigators asked for copies of checks or wire transfers of any payments by the city and the CRA to any of the named individuals and firms or related entities.

"Other than the request for information by subpoena, the City has no further information on this matter. City staff is fully cooperating and has begun gathering the requested records," City Attorney Lew Shelley said in a prepared statement.

Maddox said he was assured by Shelley and staff they are doing all they can to comply with the subpoena.

"I have confidence in their ability to handle this with the professionalism the city of Tallahassee is known for and I’m sure they will remain in contact with the media and our constituents as to the progress of these requests," he said.

Leon County Administrator Vince Long got official word of the subpoenas Thursday. He said the county has not received any subpoena or other documents from the federal government pertaining to the investigation.

"I think it's clearly far too early for me to draw any conclusions on anything," he said. "But certainly it appears to be a serious matter, and I'm curious and anxious to learn more."

County Commissioner Nick Maddox, chairman of the CRA, said he was taking a wait-and-see approach to the investigation. He said he has “no idea” what specific allegation the FBI may be looking into.

“I’m just going to let the FBI go through their process and see what happens,” he said. “I make no assumptions about what has happened or what’s going on with this investigation. The investigation will run its course.”

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City and CRA officials have been asked for documents, emails and financial information relating to notable developers and downtown projects including the developers of The Edison Restaurant.(Photo: Joe Rondone/Democrat)

Gateway, at Monroe and Tennessee streets, was built by Hunter and Harp. It received $1 million toward construction and up to an additional $447,600 to cover any income lease shortfalls that may have occurred during the first two years of the project.

The grand jury is scheduled to convene July 11. City officials don't have to appear in court if they provide the requested records with a certificate of authentication of the records, the subpoenas said.

City Commissioner Nancy Miller said the investigation seemed more directed at the private individuals and businesses doing business with the CRA and not city officials themselves. She praised changes made in CRA leadership and procedures to make its activities more transparent over the last few years.

"I welcome the scrutiny," Miller said. "If there is any wrongdoing, we need to uncover it."